The Money Cruncher, CPA
@themoneycruncher.bsky.social
A licensed CPA talking about personal finance.
I write http://TheCrunch.co for 10,700 readers
Not a financial/tax advice
I write http://TheCrunch.co for 10,700 readers
Not a financial/tax advice
People often ask “How do you invest your 401k?”
I do 100% into Vanguard Institutional 500 Index Trust ($VFFSX)
It has a 0.01% expense ratio
One of the best S&P 500 funds out there.
I do 100% into Vanguard Institutional 500 Index Trust ($VFFSX)
It has a 0.01% expense ratio
One of the best S&P 500 funds out there.
April 25, 2025 at 3:12 AM
People often ask “How do you invest your 401k?”
I do 100% into Vanguard Institutional 500 Index Trust ($VFFSX)
It has a 0.01% expense ratio
One of the best S&P 500 funds out there.
I do 100% into Vanguard Institutional 500 Index Trust ($VFFSX)
It has a 0.01% expense ratio
One of the best S&P 500 funds out there.
Nvidia's CEO is avoiding $5 billion in taxes.
How? By using sophisticated tax strategies 99% of people have never heard of.
Here's how it works:
How? By using sophisticated tax strategies 99% of people have never heard of.
Here's how it works:
February 19, 2025 at 2:12 PM
Nvidia's CEO is avoiding $5 billion in taxes.
How? By using sophisticated tax strategies 99% of people have never heard of.
Here's how it works:
How? By using sophisticated tax strategies 99% of people have never heard of.
Here's how it works:
11 ways to save on taxes:
1. Max retirement contributions
2. Mega Backdoor Roth
3. Roth IRA/Backdoor Roth
4. Optimize charitable donations (stock/DAF)
5. Tax Loss Harvest
6. Tax Gain Harvest
7. Roth Conversions
8. T-bills instead of HYSA
9. Maximize HSA
10. 529 plan
11. Buy real estate
1. Max retirement contributions
2. Mega Backdoor Roth
3. Roth IRA/Backdoor Roth
4. Optimize charitable donations (stock/DAF)
5. Tax Loss Harvest
6. Tax Gain Harvest
7. Roth Conversions
8. T-bills instead of HYSA
9. Maximize HSA
10. 529 plan
11. Buy real estate
February 18, 2025 at 1:44 PM
11 ways to save on taxes:
1. Max retirement contributions
2. Mega Backdoor Roth
3. Roth IRA/Backdoor Roth
4. Optimize charitable donations (stock/DAF)
5. Tax Loss Harvest
6. Tax Gain Harvest
7. Roth Conversions
8. T-bills instead of HYSA
9. Maximize HSA
10. 529 plan
11. Buy real estate
1. Max retirement contributions
2. Mega Backdoor Roth
3. Roth IRA/Backdoor Roth
4. Optimize charitable donations (stock/DAF)
5. Tax Loss Harvest
6. Tax Gain Harvest
7. Roth Conversions
8. T-bills instead of HYSA
9. Maximize HSA
10. 529 plan
11. Buy real estate
If you earn $150,000 W-2, you will pay $25,247 in federal taxes.
If you contribute just $5,000 to a traditional 401(k), your federal taxes drop to $24,047.
That’s $1,200 in deferred taxes.
401(k) is not a scam.
If you contribute just $5,000 to a traditional 401(k), your federal taxes drop to $24,047.
That’s $1,200 in deferred taxes.
401(k) is not a scam.
February 17, 2025 at 7:12 PM
If you earn $150,000 W-2, you will pay $25,247 in federal taxes.
If you contribute just $5,000 to a traditional 401(k), your federal taxes drop to $24,047.
That’s $1,200 in deferred taxes.
401(k) is not a scam.
If you contribute just $5,000 to a traditional 401(k), your federal taxes drop to $24,047.
That’s $1,200 in deferred taxes.
401(k) is not a scam.
How should you prioritize your money?
Here’s a general rule of thumb:
1. Build emergency fund
2. Get a 401k/403b match
3. Pay off high interest debt (8%+)
4. ESPP
5. HSA
6. Roth IRA
7. Max out 401k/403b
8. Mega Backdoor Roth
9. Pay off medium debt (4-8%) or taxable brokerage
Here’s a general rule of thumb:
1. Build emergency fund
2. Get a 401k/403b match
3. Pay off high interest debt (8%+)
4. ESPP
5. HSA
6. Roth IRA
7. Max out 401k/403b
8. Mega Backdoor Roth
9. Pay off medium debt (4-8%) or taxable brokerage
February 17, 2025 at 2:14 PM
How should you prioritize your money?
Here’s a general rule of thumb:
1. Build emergency fund
2. Get a 401k/403b match
3. Pay off high interest debt (8%+)
4. ESPP
5. HSA
6. Roth IRA
7. Max out 401k/403b
8. Mega Backdoor Roth
9. Pay off medium debt (4-8%) or taxable brokerage
Here’s a general rule of thumb:
1. Build emergency fund
2. Get a 401k/403b match
3. Pay off high interest debt (8%+)
4. ESPP
5. HSA
6. Roth IRA
7. Max out 401k/403b
8. Mega Backdoor Roth
9. Pay off medium debt (4-8%) or taxable brokerage
The IRS received 23,589,000 tax returns for the week ending Feb 7, 2025.
In the prior year, it received 25,553,000 tax returns.
This is a drop of 7.7%, or ~1.9M tax returns.
Fewer people are filing their 2024 tax returns vs 2023 so far.
In the prior year, it received 25,553,000 tax returns.
This is a drop of 7.7%, or ~1.9M tax returns.
Fewer people are filing their 2024 tax returns vs 2023 so far.
February 17, 2025 at 4:36 AM
The IRS received 23,589,000 tax returns for the week ending Feb 7, 2025.
In the prior year, it received 25,553,000 tax returns.
This is a drop of 7.7%, or ~1.9M tax returns.
Fewer people are filing their 2024 tax returns vs 2023 so far.
In the prior year, it received 25,553,000 tax returns.
This is a drop of 7.7%, or ~1.9M tax returns.
Fewer people are filing their 2024 tax returns vs 2023 so far.
Growth of $5,000 since 2016:
High yield savings account - $6,362
$VTI (Total US Market ETF) - $16,672
You must invest to protect your money from inflation & build wealth.
High yield savings account - $6,362
$VTI (Total US Market ETF) - $16,672
You must invest to protect your money from inflation & build wealth.
February 13, 2025 at 2:05 PM
Growth of $5,000 since 2016:
High yield savings account - $6,362
$VTI (Total US Market ETF) - $16,672
You must invest to protect your money from inflation & build wealth.
High yield savings account - $6,362
$VTI (Total US Market ETF) - $16,672
You must invest to protect your money from inflation & build wealth.
How to make your child a millionaire:
- Invest $200/mo in a 529 plan.
- By age 18, they can have ~$90,000 to pay for college tax-free.
- As soon as they have income (summer job), invest $550/mo until age 23 in a Roth IRA, then stop.
- By age 65, they can have a $1M portfolio tax-free (8% return)
- Invest $200/mo in a 529 plan.
- By age 18, they can have ~$90,000 to pay for college tax-free.
- As soon as they have income (summer job), invest $550/mo until age 23 in a Roth IRA, then stop.
- By age 65, they can have a $1M portfolio tax-free (8% return)
February 13, 2025 at 12:39 AM
How to make your child a millionaire:
- Invest $200/mo in a 529 plan.
- By age 18, they can have ~$90,000 to pay for college tax-free.
- As soon as they have income (summer job), invest $550/mo until age 23 in a Roth IRA, then stop.
- By age 65, they can have a $1M portfolio tax-free (8% return)
- Invest $200/mo in a 529 plan.
- By age 18, they can have ~$90,000 to pay for college tax-free.
- As soon as they have income (summer job), invest $550/mo until age 23 in a Roth IRA, then stop.
- By age 65, they can have a $1M portfolio tax-free (8% return)
My entire $250,000+ brokerage portfolio is invested in just 2 ETFs.
$VTI (20.38% 1y, 0.03% expense ratio) and $VGT (21.36% 1y, 0.09% expense ratio)
That's all I buy.
Stop overcomplicating your investments. Keep it simple & watch the fees.
$VTI (20.38% 1y, 0.03% expense ratio) and $VGT (21.36% 1y, 0.09% expense ratio)
That's all I buy.
Stop overcomplicating your investments. Keep it simple & watch the fees.
February 11, 2025 at 2:06 PM
My entire $250,000+ brokerage portfolio is invested in just 2 ETFs.
$VTI (20.38% 1y, 0.03% expense ratio) and $VGT (21.36% 1y, 0.09% expense ratio)
That's all I buy.
Stop overcomplicating your investments. Keep it simple & watch the fees.
$VTI (20.38% 1y, 0.03% expense ratio) and $VGT (21.36% 1y, 0.09% expense ratio)
That's all I buy.
Stop overcomplicating your investments. Keep it simple & watch the fees.
Many people don't want to get rich slowly.
Instead, they buy meme coins, day trade, or invest in penny stocks.
In 99% of the cases, they realize that it’s a losing game.
You can skip all that and just buy good ETFs instead (e.g. $VTI).
Instead, they buy meme coins, day trade, or invest in penny stocks.
In 99% of the cases, they realize that it’s a losing game.
You can skip all that and just buy good ETFs instead (e.g. $VTI).
February 10, 2025 at 2:01 PM
Many people don't want to get rich slowly.
Instead, they buy meme coins, day trade, or invest in penny stocks.
In 99% of the cases, they realize that it’s a losing game.
You can skip all that and just buy good ETFs instead (e.g. $VTI).
Instead, they buy meme coins, day trade, or invest in penny stocks.
In 99% of the cases, they realize that it’s a losing game.
You can skip all that and just buy good ETFs instead (e.g. $VTI).
If you contribute to a 401(k), you MUST know this:
Vesting schedule.
In simple terms, this means how long you need to work until the employer's match is truly yours (your contributions are always yours)
You don't want to quit a job 10 days before you get "cliff" vested...
Vesting schedule.
In simple terms, this means how long you need to work until the employer's match is truly yours (your contributions are always yours)
You don't want to quit a job 10 days before you get "cliff" vested...
February 9, 2025 at 6:29 PM
If you contribute to a 401(k), you MUST know this:
Vesting schedule.
In simple terms, this means how long you need to work until the employer's match is truly yours (your contributions are always yours)
You don't want to quit a job 10 days before you get "cliff" vested...
Vesting schedule.
In simple terms, this means how long you need to work until the employer's match is truly yours (your contributions are always yours)
You don't want to quit a job 10 days before you get "cliff" vested...
I saw someone celebrating a $15,258 refund.
But it’s nothing to celebrate.
You gave the IRS a 0% interest loan for $15,258 throughout the year.
That’s $680 you could’ve earned with a 4.5% HYSA instead in a year. Adjust your W-4.
But it’s nothing to celebrate.
You gave the IRS a 0% interest loan for $15,258 throughout the year.
That’s $680 you could’ve earned with a 4.5% HYSA instead in a year. Adjust your W-4.
February 8, 2025 at 7:07 PM
I saw someone celebrating a $15,258 refund.
But it’s nothing to celebrate.
You gave the IRS a 0% interest loan for $15,258 throughout the year.
That’s $680 you could’ve earned with a 4.5% HYSA instead in a year. Adjust your W-4.
But it’s nothing to celebrate.
You gave the IRS a 0% interest loan for $15,258 throughout the year.
That’s $680 you could’ve earned with a 4.5% HYSA instead in a year. Adjust your W-4.
Tomorrow I’m sharing how to file your own taxes for under $20, regardless of how much money you made or how complex it is (rentals or business income), in my free newsletter.
Link in bio.
Link in bio.
February 8, 2025 at 4:01 AM
Tomorrow I’m sharing how to file your own taxes for under $20, regardless of how much money you made or how complex it is (rentals or business income), in my free newsletter.
Link in bio.
Link in bio.
I ditched my savings account 1.5 years ago.
I use Vanguard Money Market Funds instead.
Their yields:
• Treasury 4.26% $VUSXX (state/local tax exempt)
• Muni 2.08% $VMSXX (federal tax exempt)
• Federal 4.28% $VMFXX
Fidelity/Schwab have their own MMFs.
I use Vanguard Money Market Funds instead.
Their yields:
• Treasury 4.26% $VUSXX (state/local tax exempt)
• Muni 2.08% $VMSXX (federal tax exempt)
• Federal 4.28% $VMFXX
Fidelity/Schwab have their own MMFs.
February 7, 2025 at 2:05 PM
I ditched my savings account 1.5 years ago.
I use Vanguard Money Market Funds instead.
Their yields:
• Treasury 4.26% $VUSXX (state/local tax exempt)
• Muni 2.08% $VMSXX (federal tax exempt)
• Federal 4.28% $VMFXX
Fidelity/Schwab have their own MMFs.
I use Vanguard Money Market Funds instead.
Their yields:
• Treasury 4.26% $VUSXX (state/local tax exempt)
• Muni 2.08% $VMSXX (federal tax exempt)
• Federal 4.28% $VMFXX
Fidelity/Schwab have their own MMFs.
If you don't know where to invest, look at $VTI. $100 of it gets you:
> Apple - $6.65
> Microsoft - $5.51
> Nvidia - $5.49
> Amazon - $3.65
> Meta - $2.24
And $76.46 worth of 3,604 other U.S. stocks with a 0.03% expense ratio.
> Apple - $6.65
> Microsoft - $5.51
> Nvidia - $5.49
> Amazon - $3.65
> Meta - $2.24
And $76.46 worth of 3,604 other U.S. stocks with a 0.03% expense ratio.
February 6, 2025 at 2:09 PM
If you don't know where to invest, look at $VTI. $100 of it gets you:
> Apple - $6.65
> Microsoft - $5.51
> Nvidia - $5.49
> Amazon - $3.65
> Meta - $2.24
And $76.46 worth of 3,604 other U.S. stocks with a 0.03% expense ratio.
> Apple - $6.65
> Microsoft - $5.51
> Nvidia - $5.49
> Amazon - $3.65
> Meta - $2.24
And $76.46 worth of 3,604 other U.S. stocks with a 0.03% expense ratio.
If you make $150,000 in W-2 in 2025 you will pay:
• $25,247 fed tax
• $11,475 payroll tax
If you make $150,000 from long term capital gains/qdividends, you will pay:
• $12,998 fed tax
Almost 3 times less tax. The tax code favors investors.
• $25,247 fed tax
• $11,475 payroll tax
If you make $150,000 from long term capital gains/qdividends, you will pay:
• $12,998 fed tax
Almost 3 times less tax. The tax code favors investors.
February 4, 2025 at 2:03 PM
If you make $150,000 in W-2 in 2025 you will pay:
• $25,247 fed tax
• $11,475 payroll tax
If you make $150,000 from long term capital gains/qdividends, you will pay:
• $12,998 fed tax
Almost 3 times less tax. The tax code favors investors.
• $25,247 fed tax
• $11,475 payroll tax
If you make $150,000 from long term capital gains/qdividends, you will pay:
• $12,998 fed tax
Almost 3 times less tax. The tax code favors investors.
The national average savings account yield is 0.55%.
Yet the 4 week Treasury Bills are paying ~4.32% and no state/local taxes. Buy from Treasury Direct.
Or explore a Treasury ETF (i.e. $SGOV) or Treasury MMF (i.e $VUSXX)
Don't let banks rip you off.
Yet the 4 week Treasury Bills are paying ~4.32% and no state/local taxes. Buy from Treasury Direct.
Or explore a Treasury ETF (i.e. $SGOV) or Treasury MMF (i.e $VUSXX)
Don't let banks rip you off.
February 3, 2025 at 2:02 PM
The national average savings account yield is 0.55%.
Yet the 4 week Treasury Bills are paying ~4.32% and no state/local taxes. Buy from Treasury Direct.
Or explore a Treasury ETF (i.e. $SGOV) or Treasury MMF (i.e $VUSXX)
Don't let banks rip you off.
Yet the 4 week Treasury Bills are paying ~4.32% and no state/local taxes. Buy from Treasury Direct.
Or explore a Treasury ETF (i.e. $SGOV) or Treasury MMF (i.e $VUSXX)
Don't let banks rip you off.
For those of you with modest incomes:
Long-term capital gains on stocks/ETFs can be taxed at 0%.
This means that you can harvest (sell then re-buy) these stocks/ETFs to increase your cost basis & pay less federal taxes in the future.
(might be subject to state tax)
Long-term capital gains on stocks/ETFs can be taxed at 0%.
This means that you can harvest (sell then re-buy) these stocks/ETFs to increase your cost basis & pay less federal taxes in the future.
(might be subject to state tax)
February 3, 2025 at 1:38 AM
For those of you with modest incomes:
Long-term capital gains on stocks/ETFs can be taxed at 0%.
This means that you can harvest (sell then re-buy) these stocks/ETFs to increase your cost basis & pay less federal taxes in the future.
(might be subject to state tax)
Long-term capital gains on stocks/ETFs can be taxed at 0%.
This means that you can harvest (sell then re-buy) these stocks/ETFs to increase your cost basis & pay less federal taxes in the future.
(might be subject to state tax)
Big misconception about Roth IRAs:
"I don't want ALL my money to be locked up until 59 ½"
That's not true.
You can always withdraw contributions (money you put in) at any time without penalty or taxes from a Roth IRA.
"I don't want ALL my money to be locked up until 59 ½"
That's not true.
You can always withdraw contributions (money you put in) at any time without penalty or taxes from a Roth IRA.
February 1, 2025 at 3:02 PM
Big misconception about Roth IRAs:
"I don't want ALL my money to be locked up until 59 ½"
That's not true.
You can always withdraw contributions (money you put in) at any time without penalty or taxes from a Roth IRA.
"I don't want ALL my money to be locked up until 59 ½"
That's not true.
You can always withdraw contributions (money you put in) at any time without penalty or taxes from a Roth IRA.
4 ways to invest for your child:
1. 529 plan - tax-free growth and withdrawals for education
2. Roth IRA - if your child has earned income (good for business owners)
3. Brokerage - liquid & cheap funds (i.e $VTI 0.03% cost)
4. Trusts (for $$$$ net worth, avoid estate tax)
1. 529 plan - tax-free growth and withdrawals for education
2. Roth IRA - if your child has earned income (good for business owners)
3. Brokerage - liquid & cheap funds (i.e $VTI 0.03% cost)
4. Trusts (for $$$$ net worth, avoid estate tax)
January 31, 2025 at 7:03 PM
4 ways to invest for your child:
1. 529 plan - tax-free growth and withdrawals for education
2. Roth IRA - if your child has earned income (good for business owners)
3. Brokerage - liquid & cheap funds (i.e $VTI 0.03% cost)
4. Trusts (for $$$$ net worth, avoid estate tax)
1. 529 plan - tax-free growth and withdrawals for education
2. Roth IRA - if your child has earned income (good for business owners)
3. Brokerage - liquid & cheap funds (i.e $VTI 0.03% cost)
4. Trusts (for $$$$ net worth, avoid estate tax)
I personally know someone who declined a promotion because the increase would’ve bumped him from the 12% tax bracket to 22%.
FYI - going into the next marginal tax bracket only means the money in that specific range is taxed at that higher rate, not all of it
FYI - going into the next marginal tax bracket only means the money in that specific range is taxed at that higher rate, not all of it
January 20, 2025 at 2:02 PM
I personally know someone who declined a promotion because the increase would’ve bumped him from the 12% tax bracket to 22%.
FYI - going into the next marginal tax bracket only means the money in that specific range is taxed at that higher rate, not all of it
FYI - going into the next marginal tax bracket only means the money in that specific range is taxed at that higher rate, not all of it
Republicans on the House Budget Committee just revealed 45 potential tax law changes.
I reviewed them all so that you don't have to.
Here's everything you need to know:
I reviewed them all so that you don't have to.
Here's everything you need to know:
January 19, 2025 at 2:10 PM
Republicans on the House Budget Committee just revealed 45 potential tax law changes.
I reviewed them all so that you don't have to.
Here's everything you need to know:
I reviewed them all so that you don't have to.
Here's everything you need to know:
The goal is not to minimize taxes, but to maximize after-tax return.
For example, a 0.01% HYSA gives almost no return after taxes, while a 4% HYSA, even after taxes, can still leave you with ~3%.
The higher yield results in more money overall, despite paying more in tax.
For example, a 0.01% HYSA gives almost no return after taxes, while a 4% HYSA, even after taxes, can still leave you with ~3%.
The higher yield results in more money overall, despite paying more in tax.
January 18, 2025 at 2:09 PM
The goal is not to minimize taxes, but to maximize after-tax return.
For example, a 0.01% HYSA gives almost no return after taxes, while a 4% HYSA, even after taxes, can still leave you with ~3%.
The higher yield results in more money overall, despite paying more in tax.
For example, a 0.01% HYSA gives almost no return after taxes, while a 4% HYSA, even after taxes, can still leave you with ~3%.
The higher yield results in more money overall, despite paying more in tax.
Big mistake beginners make with a Roth IRA:
Not investing within the account.
It happens more often than you might think:
Not investing within the account.
It happens more often than you might think:
January 17, 2025 at 2:00 PM
Big mistake beginners make with a Roth IRA:
Not investing within the account.
It happens more often than you might think:
Not investing within the account.
It happens more often than you might think:
If you want to retire at 65, you need to save at least 15% of your salary starting at age 25 per Fidelity.
That 15% should be used to:
1. Maximize your employer’s 401k match
2. Pay off any credit card debt
3. ESPP (if you have)
4. HSA
5. Roth IRA
That 15% should be used to:
1. Maximize your employer’s 401k match
2. Pay off any credit card debt
3. ESPP (if you have)
4. HSA
5. Roth IRA
January 13, 2025 at 2:00 PM
If you want to retire at 65, you need to save at least 15% of your salary starting at age 25 per Fidelity.
That 15% should be used to:
1. Maximize your employer’s 401k match
2. Pay off any credit card debt
3. ESPP (if you have)
4. HSA
5. Roth IRA
That 15% should be used to:
1. Maximize your employer’s 401k match
2. Pay off any credit card debt
3. ESPP (if you have)
4. HSA
5. Roth IRA